US Cash Products-Distillates weaken across the board

NEW YORK, Nov 21 (Reuters) - Distillates along the Gulf Coast continued to suffer from shipping restrictions, keeping differentials weak, despite a spate of refinery snags and routine maintenance on diesel-making units in the region, traders said on Friday.

Exxon Mobil said rates returned to normal at its 348,500 barrel per day refinery in Beaumont, TX after a snag with a sulfur plant while Alon reported a snag with a sulfur recovery unit at its 70,000 bpd Big Spring, TX plant.

In the New York Harbor, traders said that an influx of Russian grade heating oil cargoes for arrival starting mid-December are expected to add to supply and moderate prices, pressuring down differentials.

On gasoline, the disparity between strong New York Harbor cash gasoline differentials and weak Gulf prices have pulled up the latter and pushed down the former ahead of scheduling on the Colonial Pipeline later in the day.

U.S. crude futures seesawed on Friday, after bouncing up early as global equities markets rose after plunging on Thursday and the January crude contract became the front month [O/N]

For a list of refinery outages/restarts, click [REF/US]

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Scheduling cycle 66 M4 conventional gasoline differentials gained ahead of shipping on the Colonial Pipeline, despite restrictions on the pipeline capacity due to high demand due to the wide spread between Gulf and Harbor barrels.

Prompt barrels were seen trading at 2.75 cents under the December screen, up about penny from Thursday's levels, as the pipeline arbitrage continued to pull barrels.

Cycle 66 61-grade ultra-low sulfur diesel slipped to trade at 3.00 cents under the December heating oil contract, before talking at 3.00/2.75 cents under.

Same cycle 74 grade was offered at 5.00 cents under the same screen.

Heating oil was pegged at 7.75/7.00 cents under the screen while jet traded at 0.50 cents over.

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Distillates price differentials were flat to weaker amid lower demand, with cash heating oil asking prices set between evens and 0.25 cent over the benchmark December futures, compared with 0.25 cent over on Thursday, brokers said.

ULSD fell half a penny at 7.00 cents over the December futures early on but was later valued closer to 5.00 cents over, traders said. Jet fuel offers fell a penny at December futures plus 7.50 cents.

"It's the economy and plenty of supply," said one trader.

Among gasolines, traders said early discussions focused on M5 conventional regular at 4.75 cents over the print for any month barrels, up from late Thursday's 4/4.25 cents over.

Any month F5 was flat at evens to the print, they said.

"Rates next month are at -4.25, and -4.10 just trades on RBOB so M's at around -0.75 I guess. That's strong," a gasoline trader said. "Other than that nothing much, spread coming in."

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Chicago cash gasoline differentials fell to 11 to 10 cents under the December print, down about a half penny on average from late Thursday levels and posting a bigger fall compared with early Thursday's 8.75/8.25 cents under.

Group Three N-grade was at 2.25 to 1.75 cents under the print, compared with 2.25 cents under late Thursday, traders added.

X-grade ULSD diesel in the Group was set between 1.00 and 1.50 cents over the benchmark futures, straddling its Thursday close but down from 2.50 cents over at its highest that day.

Chicago ULSD diesel, at December futures minus 2.50 cents to minus 1.50 cents, was down about a penny and a half (Reporting by Janet McGurty and Haitham Haddadin)